The People’s Bank of China banned its citizens from raising funds through Initial Coin Offerings (ICO).
It’s not just about upcoming and new ICOs. It also concerns individuals and organizations that have already completed their ICOs, the regulator forces them to provide refunds to the investors.
The PBoC had completed investigations into ICOs last weekend, and the decision was made. As a consequence of this decision a major Blockchain international conference scheduled for September 2 in Beijing was canceled just one day prior to its commencement. The authorities also warned all of the main trading platforms about official ban of ICO, claiming that it is an illegal fundraising.
We have built our ICO’s legal structure in accordance with the regulators’ recommendations, thus insuring our investors safety. And now we also know the right and relatively safe way of legal formalization for our portfolio companies’ ICOs.
All in all, FinShi Capital supports transparent regulations over the cryptocurrency market and ICO. Grey areas of the cryptocurrency market, not regulated at all or just partially regulated, attract too many fraudsters, so each country must think of some ways of keeping its citizens safe from scam investments. But, just like many other investment funds, we are confused about the penalizing of the already completed ICOs. Introducing regulations over ICOs in a certain country is fine, but announcing all the completed ones illegal and forcing individuals and organizations to return funds is wrong. We believe that regulations must not affect the completed crowdsales, as this can lead to disastrous consequences for the cryptoeconomy. Moreover, investors might suffer huge losses of the funds they raised in the past, when they were still acting under the law.
Invest with professionals, this will help you to avoid this kind of situations.